Energy developments and the challenges of climate change

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Energy developments and the challenges of climate
change
European Commission Research DG Glyn EVANS
What energy policy for the EU?European Trade
Union ConfederationBrussels, 06 March 2007
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Research and innovation
Challenge of climate change Energy
challenge Technology challenge RD and
innovation challenge
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The SET-Plan

• Towards a European Strategic Energy Technology
  Plan COM(2006)847
• SET-Plan to be presented by the Commission in
  2007, for consideration at the 2008 Spring
  Council
• Basic premise
• we are not doing enough!
• business as usual will not achieve policy goals
• need to transform energy technology innovation

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The innovation challenge

• Innovation in the energy sector is weak
• Market failures (constrains investment)
• Structural weaknesses (e.g.)
• long-lead times to market (system inertia)
• locked-in infrastructure investments
• dominant, often natural monopoly, actors
• historically reducing RD budgets
• diverse market incentives
• scattered, fragmented and sub-critical capacities

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Not starting from zero!

• Energy RD in EU Framework Programmes not only
  in the Energy Theme, but as a cross-cutting
  activity
• Intelligent Energy-Europe (part of the
  Competitiveness and Innovation Programme)
• European Technology Platforms bringing
  stakeholders together to establish common visions
  and research agendas
• ERA-Net scheme encouraging MSs to coordinate
  RD programmes

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Available instruments

• Technology push
• RD programmes (JTI, Art. 169, RSFF, )
• EIB, Structural Funds for innovation, venture
  capital
• Market/demand pull
• regulations, pricing (ETS, taxation), energy
  labelling, performance standards
• feed-in tariffs, quotas, obligations, green and
  white certificates, fiscal incentives, public
  procurement
• Innovation
• European Institute of Technology, lead markets

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EU SET-Plan

• Essence of the SET-Plan matching technologies
  with instruments and proposing the optimum scale
  (horses for courses)
• Ambitious target-oriented EU level initiatives
  risk sharing, pooling resources, partnerships
• Supporting actions technology watch, capacity
  mapping, modelling energy trends
• Governance institutional framework, Steering
  Group of MSs, Energy Technology Forum

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Possible areas for action

• energy efficiency
• second generation biofuels
• large-scale offshore wind
• photovoltaics
• fuel cell and hydrogen technologies
• carbon capture and storage
• fourth generation nuclear fission reactors
• basic energy for research

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Process for 1st SET-Plan

• based on a shared European vision on the role
  that technology can play in the context of a
  European energy policy
• widespread consultation
• public consultation on Europa
• expert workshops, technology platforms, advisory
  groups
• further consultations once concrete initiatives
  emerge
• target November 2007